NasdaqGS:PRAA

Stock Analysis Report

Executive Summary

PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas and Europe.


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

How has PRA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRAA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

PRAA

0.01%

US Consumer Finance

0.06%

US Market


1 Year Return

15.0%

PRAA

14.3%

US Consumer Finance

19.3%

US Market

Return vs Industry: PRAA exceeded the US Consumer Finance industry which returned 14.3% over the past year.

Return vs Market: PRAA underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

PRAAIndustryMarket
7 Day-1.2%0.01%0.06%
30 Day-0.8%-0.4%1.7%
90 Day1.2%5.8%9.0%
1 Year15.0%15.0%16.2%14.3%21.8%19.3%
3 Year-10.7%-10.7%41.3%34.5%49.5%39.9%
5 Year-26.5%-26.5%47.4%36.9%73.1%54.1%

Price Volatility Vs. Market

How volatile is PRA Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PRA Group undervalued compared to its fair value and its price relative to the market?

22.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PRAA ($37.01) is trading above our estimate of fair value ($24.17)

Significantly Below Fair Value: PRAA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PRAA is poor value based on its PE Ratio (22.8x) compared to the Consumer Finance industry average (8.8x).

PE vs Market: PRAA is poor value based on its PE Ratio (22.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PRAA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: PRAA is overvalued based on its PB Ratio (1.5x) compared to the US Consumer Finance industry average (1.1x).


Next Steps

Future Growth

How is PRA Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRAA's forecast earnings growth (24.2% per year) is above the savings rate (1.7%).

Earnings vs Market: PRAA's earnings (24.2% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PRAA's revenue (6.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: PRAA's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRAA's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has PRA Group performed over the past 5 years?

-18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRAA has a large one-off gain of $26.6M impacting its September 30 2019 financial results.

Growing Profit Margin: PRAA's current net profit margins (7.5%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: PRAA's earnings have declined by -18.6% per year over the past 5 years.

Accelerating Growth: PRAA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PRAA had negative earnings growth (-47.1%) over the past year, making it difficult to compare to the Consumer Finance industry average (11.4%).


Return on Equity

High ROE: PRAA's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PRA Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PRAA has a low level of unsold assets or inventory.

Debt Coverage by Assets: PRAA's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: PRAA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PRAA has a sufficient allowance for bad loans.

Low Risk Liabilities: PRAA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PRAA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PRAA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PRAA has an appropriate level of bad loans.


Next Steps

Dividend

What is PRA Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PRAA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PRAA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PRAA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRAA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PRAA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Kevin Stevenson (54yo)

2.7yrs

Tenure

US$3,920,953

Compensation

Mr. Kevin P. Stevenson co-founded PRA Group, Inc. (Formerly known as Portfolio Recovery Associates, Inc.) in 1996 and has been its President since August 2016 and Chief Executive Officer since June 1, 2017 ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD3.92M) is about average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Stevenson
Founder2.7yrsUS$3.92m0.47% $7.9m
Peter Graham
Executive VP & CFO3.5yrsUS$1.82m0.018% $305.4k
Christopher Lagow
Senior VP4.1yrsUS$1.21m0.0043% $72.8k
Steven Roberts
Executive Vice President of Europe & Corporate Development2.1yrsUS$1.78m0.10% $1.7m
Christopher Graves
Executive Vice President of Americas Core14.1yrsUS$1.82m0.079% $1.3m
Steven Fredrickson
Executive Chairman17.9yrsUS$2.99m0.61% $10.2m
Chris Burroughs
Chief Technology Officer3.8yrsno datano data
Deborah Cassidy
Chief Information Officer & Senior VP4.8yrsno datano data
Darby Schoenfeld
Vice President of Investor Relations0yrsno datano data
Laura White
Chief Compliance Officer5.8yrsno data0.0038% $63.9k

4.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: PRAA's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Stevenson
Founder2.7yrsUS$3.92m0.47% $7.9m
Steven Fredrickson
Executive Chairman17.9yrsUS$2.99m0.61% $10.2m
Scott Tabakin
Independent Director15.3yrsUS$218.09k0.093% $1.6m
Lance Weaver
Lead Director2.1yrsUS$221.53k0.019% $315.0k
John Fain
Independent Director9.9yrsUS$211.84k0.061% $1.0m
Penelope Kyle
Independent Director14.3yrsUS$206.22k0.080% $1.3m
Marjorie Connelly
Independent Director2.1yrsUS$124.98k0.0072% $121.5k
Geir Olsen
Independent Director4.1yrsUS$192.47k0.12% $2.0m
Vikram Atal
Independent Director4.5yrsUS$221.22k0.020% $334.8k
James Nussle
Independent Director6.7yrsUS$206.22k0.030% $496.5k

5.6yrs

Average Tenure

59.5yo

Average Age

Experienced Board: PRAA's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PRA Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PRA Group, Inc.
  • Ticker: PRAA
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$1.681b
  • Shares outstanding: 45.41m
  • Website: https://www.pragroup.com

Number of Employees


Location

  • PRA Group, Inc.
  • 120 Corporate Boulevard
  • Norfolk
  • Virginia
  • 23502
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRAANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2002
POV1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2002

Biography

PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas and Europe. It is involved in the acquisition of accounts that are primarily the unpaid obligations of individuals owed to credit grantors, which include banks and other types of consumer, retail, and auto finance companies. The company also acquires nonperforming loans, including Visa and MasterCard credit cards, private label and other credit cards, installment loans, lines of credit, deficiency balances of various types, legal judgments, and trade payables from banks, credit unions, consumer finance companies, telecommunication providers, retailers, utilities, automobile finance companies, student loan companies, and other debt owners. In addition, it provides fee-based services on class action claims recoveries and by servicing consumer bankruptcy accounts. The company was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014. PRA Group, Inc. was founded in 1996 and is headquartered in Norfolk, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:58
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.